Enabling Food Security through Digitization of the Food...
Transcript of Enabling Food Security through Digitization of the Food...
11Hewani IM presentation v2AMS
Enabling Food Security through Digitization of the Food Value Chain
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We are an end to end Supply Chain solutions provider based in Nairobi Kenya with over 16 years of supply chain automation experience in 4 African markets
We use mobility tools with powerful insightful analytics tools to help drive efficiencies, mitigate losses and create linkages to markets while providing access to financial services
Who we are
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How we bring value across the Supply Value Chain
Warehouse Aggregation Points
Aggregate, weigh, quality check, and track supplies of farm commodities
Market farm commodities to global or regional buyers (depends on commodity)
Farmers:
Produce commodities in exchange for payment
Receive or purchase inputs and co-op extension services
Processors
Process commodities and manufacture for retail
Monitor cross-supply chain activities (e.g., inventories)
Inputs & Service Providers:
Provide farmers with inputs and key services on behalf of farm cooperative
Retailers:
Sale to end customers
Input sales to farmers
Distributors:
Develop and maintain retail sales pipeline & relationships
Real-time inventory & field force management
Virtual City – What We Do
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Digitization Supply Chain
Projects
Global Recognition &
Strategic Partnerships
G-Soko is a Virtual City
innovation for the
automation of the Grains
Value Chain from
Smallholder farmer to
Market Auction
AgriManagr is a
Collateral Management
innovation tracking the
inventory storage and
purchases of produce at
all Aggregation levels
Researchr is a Field
Research innovation
capturing the Baseline,
Monitoring, Audit and
Certification processes
in the field
EWS Leaf Buying is
a Processing Factory
innovation managing
the lifecycle of leaf for
the Tea Value Chain
up to point of export
Agro County
Solution is an Agro
Cooperative Solution
tracking the purchase
of Commodities for a
County Government
Our Successes – Innovation Lives Here
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Our Service Offering
Cloud PlatformEnterprise Mobility Apps On Demand Analytics
• Mobility Applications specifically designed to map Agricultural Commodity Value Chains
• Remote data capture and transaction processing with easy to use interfaces
• Keeping track of all field activities through real time access to the data across multiple locations, projects and markets
• Enable productivity and efficiency of Field Teams
• Analytics to drive decision making based onreal time visibility.
• Data driven predictive analytics & demand planning for improved Impact Tracking
Our Service Offering
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Problem We Seek to Solve
Timely PaymentsSocietal Trust in Agri-Business
• Farmer Trust• Slow delivery to payment cycle• Contracts not honored • Formal Channel Prices lower than
Agent spot price• Collapse of Extension Services• Low & Seasonal Yield per cow / farm • Poor Quality Feeds• Inadequate Daily Animal Feed • Lack of Knowledge on Best Practices • Market Glut in wet season• Market Scarcity in dry season• Fodder production unreliable
• Youth Apathy• Agriculture Lack of Interest• Very Manual• No Wow Factor• Don’t see how can scale• Long lead time to revenue• Don’t own the land• Cant see Growth Model
• Improve the quality of commodity• At Farm
• Access to quality feed• Access to quality seeds/inputs• Track inputs volume
• Per Commodity• Identify Breeds performance
• At Buying Centre• Clerk driven Testing• By Sight & Smell
• In Transportation• Batch Management• Container Type• Traceability to Buying Centre
• In Cooler or Warehouse• Technology driven testing• Parameters based testing
• At Processor• Value Based Pricing• Incentives for Quality• Incentives for Consistency
• Delivery to Payment CycleSpeed of Farmer Payments
• Digital Payments to Farmer mobile money or virtual bank account
• Payments made directly to farmer less check off
• Improve Farmer / Processor relationships
Side Selling• Reduce side sales to Agents
who offer cashPayment Options
• Provide farmer with various digital options for payments
• Instantaneous Full payment
• Instantaneous Advance Payment
• End month Payment less Deductions
• Bonuses
Commodity Quality & Value
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Digitization of the Agro Value Chain
Desired OutcomesChallenges
• Lack of automated, centralized management of the linkages across supply chain allows value to be transferred to brokers as opposed to producers
• Deficiency in tracking the Food Balance Sheet due to lack of Visibility on Farm or Storage Quantity and Quality
• No data driven basis for Food Security Projections and Impact Analysis
• Manual record keeping in the produce collection process leads to challenges in accountability creating an opportunity for fraud and theft
• Long lead times in reconciliations and net payments due to farmers from their commodity deliveries leading them to sell cheaply at the Farm Gate to Brokers
• Middlemen, Transporters and Local Market Stalls act as Traders and generate higher income from produce than the farmers
• Register all the stakeholders and map their location and activities to the value chain
• Record all points of engagement with stakeholder such as farmers, inputs suppliers, extension officers, warehouses
• Digitize the weighing of all commodities delivered to aggregation points together with specific quality parameter checks
• Monitoring and Evaluation Tools that enable verification and validation of value chain market players, premises, demographics and other relevant indicators
• Deliver market analytics dashboards and reports that add value to all decision makers across the entire value chain
• Transfer a greater proportion of the market price to the primary producer easily, speedily, digitally and correctly
• Eradicate Fraud at Smallholder Farm Gate
• Map the Ecosystem - Identify each Entity in the Value Chain, including Farmers, Cooperatives, Traders,Transporters, Processors, Distributors
• Ownership – Maintain Ownership of Produce with primary producer until sale
• Values & Ethics – Transparency and Visibility in the entire process
• Youth Jobs – Digital Jobs that are exciting to Youth & Add Value to Society
• Food Security - Track, Validate and Reconcile the inputs, farming, storage, movements and quality of commodities
• Policy Formulation – Use Digital Data Analytics to derive Predictive Models
• Credit – Enable access to credit and payments to farmers through visibility
• Insurance – Create opportunity for innovative Agro Insurance Products
Ideal Solution
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How do we Automate Agro Value Chains
Collateral Management
• Registration all Smallholder farmers and Cooperatives in ecosystem
• Cluster all smallholder farmers into groups, routes and centers
• Track quality and quantity of delivered commodity procured from smallholder farmers
• Collateral management of inventory and ownership at warehouse level
• Monitoring quality parameters that are essential per commodity type
• Improved traceability through use of technologies such as bag tagging using RFID & NFC cards for farmers
• Warehouse Receipt generation enabling access to credit against delivered produce
Market Segmentation
• The Agro Force solution is built to work in the following sub sectors:
• Dairy
• Grains
• Pulses
• Tea
• Coffee
• Horticulture
• Livestock & Meats
• The target clientele comprisesof Agro Trade Associations, Warehouse Owners, Cooperatives & Farmer Groups
• The farmers are the end beneficiaries
Appropriate Technology
• Digital weigh scales and mobile devices at point of produce purchase enable assignment of volume, value and quality per farmer and buying center
• Built for remote areas with limited connectivity – Can work both online and offline
• Use of appropriate hardware such as ruggedized devices
• Easy to use applications – built to ensure limited training
• Powerful route management capabilities to ensure best of class commodity procurement
• SMS to the farmer on transaction and month to date balances
KPI’s Monitoring
• Fraud mitigation by use of accurate digital devices and notifications to stakeholders
• Commodity aggregation per farmer/ route / buying center
• Collateral Management per store / vehicle / warehouse
• Quality parameter checks
• Stock Reconciliation
• Inputs Distribution Tracking
• Farmer Month to date unpaid Inventory Balances
• Farmer loans
• Access to Education and Health Facilities on Credit
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Our Value Chain Applications
A suite of inter-related Mobile & Tablet applications designed for each level and persona in the Value Chain, with easy to use interfaces on simple field devices all
integrated into one Platform
Field Commodity Apps
• Farmer, Cooperatives and Aggregation Centers Registration
• Aggregation Centre Purchases & Storage
• Warehouse Collateral Management
• Transport Facilitation and Tracking
• Value Assignment to Inventory
• Advances and Loans against inventory
• Inputs Facilitation against inventory
• Market Buyers Trade
• Farmer and Cooperative payments
• Crop Ownership vs. Liability Tracking
Field Monitoring Apps
• User Baseline & Demographics
• Field Utilization
• Extension Service Provided
• Inputs Purchased
• Acreage & Farm Pictures
• Extention Services Provided
• Inputs Applied
• Financial Credit Access
• Merchants Mapping
• Product SKUs
• Retail Stock Availability
• Competitor Analysis
• Crowdsourced Data Collection
Field Distribution Apps
• Visibility of field operations
• GPS tracking per transaction
• Orders
• Sales Transactions
• Cashless Payments Collection
• Inventory Deliveries & Returns
• Route Management
• Losses Analysis
• Loyalty & Rewards per Transaction
• Alerts & Notifications
• Trade Credit & Vouchers
• Invoice Discounting
Impact Analysis
• Ecosystem Singlular View
• Stakeholder Mapping
• Yield Analysis
• Collateral Mapping Analysis
• Market Performance Analysis
• Cashless Wallet Accounts
• Heat Map Activity Tracking
• Reorder Planning & Tracking
• Reconciliation of Sales vs Stock vs Payments
• Financial Inclusion Analysi
• Sales to Cash Cycle
• Predictive Analytics
Our Value Chain Offerings
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Executive Summary
Market Situation
• Significant challenges hinder the Digitization of the Food Value Chain for Farmers, Cooperatives, Service Providers, Processors, Distributors and Retailers in the Food Industry, although they are a key engine of growth in the economy
• Five key challenges plague the Agro Sector in Unlocking Value include: lack of collateral, lack of records to access credit, losses in storage, lack of knowledge on best practices and poor farmer returns
• Supply Chain Automation Technology creates an opportunity to activate Entrepreneurs in a Country such that they can provide valuable services to the Farming Community, generate Revenue, reduce the endemic Fraud and Corruption in the Produce Purchase process while enhancing Efficiencies
Value Proposition
• The Agro Value Chain Solution proposed in this document creates a unique competitive advantage to Digitally Enabed Entrepreneurs by providing a platform for them to provide valuable innovative services to the Agro and Food Industry through technology while enabling access to Financial Services
• The Agro Value Chain Solution provides a solid platform by which the Country can convert the Youth to be Agents of Agricultural Transformation both Economically and Socially towards ensuring Food Security
The Opportunity
• Kenya has been ranked first globally on four aspects of digital financial inclusion, namely: country commitment, mobile capacity, regulatory environment and adoption of digital financial services.
• Through this platform, the Youth potential can be leveraged to have significant Impact with respect to:• Increase value of market price allocated to Farmers as proportion to Market Buyers Price• Enhance adoption of digital financial services among smallholder farmers for faster remittances• Generate Digital Jobs in the Agro Sector for Entrepreneurs & Youth Groups within Community• Provide capability for farmers to improve the quality of produce and their farming best practices • Reduce Fraudulent, Corrupt and Unethical Practices in the purchase of agriculture produce• Enable Youth Groups to Order and deliver Quality Inputs from Suppliers directly and affordably
Transformation of the Agro Value Chain
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Be specific and Targeted inServices Provision
Communicate directly to GoK Agencies
Develop Digital Services & BusinessBased on Agro
Sell Farm Inputs to Coops and Farmer Groups
Collect Agro Market data directly from Farm Gate
Aggregate & Purchase Produce at Farm Gate
Provide Insights andInterventions based onData Analysis
Create linkages between Agro Stakeholders
Enable mobile payments direct to Farmers
Provide Extension Services for a Fee to Farmers
Securely Capture information directly from the Field
Agro Value Chain – Digitization Services
Register Farmer, Coops, Warehouses & Service Providers
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Consumer Production Distribution321
Baseline Mapping & Registration
Coops + Farmer Payments & Loans
Produce Purchase & Aggregation
Analytics and Insights
Delivery Tracking
Stakeholder Communication
Farm Extension Services
Food Distribution & Retail Sales
Entrepreneurial Digital Activities
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• Entrepreneurs can conduct Baseline of Farmer, Livestock and Farm done capturing:
• Farmer KYC Details• Demographics• Acreage• % under crop• Crops• Livestock• Inputs applied• Seeds Planted• Farmer Group• Location Coordinates• Inputs Expenditure• Market Price• Net Benefit
• Entrepreneurs can conduct serve as Service Providers in the rural areas
• All services provided to the farmer can be digitised:
• Extension Services• Fodder & Hay• Farm Mapping• Planting• AI Services• Animal Health• Training• Insurance• Equipment Leasing• Cattle Dip Services• Feeds Advisory• Breeding
Entrepreneurs can provide Agency Services as Input Providers to collect orders from farmers and also sell Inputs directly to farms, farmer groups & cooperatives
• Agro Farm and Livestock Input Sales
• Input Supplier Orders & Mobile Payments
• Inputs Credit sales against delivered produce per farmer
• Inputs credit purchases from Suppliers
• Invoice discounting for inventory purchases
Inputs ProvidersService ProvidersThe Farm Produce Purchase
• Entrepreneurs can serve as Buying Clerks to weigh produce delivered by farmers and track quality by:
• Digital weighing of produce with accurate measures
• Field Quality Testing• Digital Goods Receipts• SMS confirmation of
delivery to farmer• Farmer can query month to
date Balances• Aggregation of weights
from multiple farmers• Storage Standards Tracked• Losses Tracked• Quality Tracked
the dairy ecosystem actors Digital Enabled Jobs – Farm & Aggregation Services
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• Entrepreneurs are registered Transporters to handle commodity on consignment & paid Service Fee as opposed to Trade.
• Youth can utilize the Digital Platform to track:
• Vehicles• Drivers• Inventory Manifest• Loading Sheets• Delivery Notes• Transfer Notes• Losses• Batches• Variances
• Entrepreneurs can manage Coolers & Warehouses as aggregation points for Farmer Groups
• Youth use Platform to track:• Volumes• Ownership• Goods Received• Transfers• Transit• Releases• Quality Parameters• Grades• Warehouse Receipts• Notifications• Inventory Value
• Entrepreneurs can provide digital collateral and quality management services to Processors.
• This includes:• Receiving batches of
produce from coolers and warehouses
• Contract Transporters to collect in bulk
• Track produce Pack house Productivity
• Order Processing & Dispatch
• Vehicle Loading• Lot Traceability
Processors Milk Coolers Transporters
the dairy ecosystem actors Digital Enabled Jobs– Logistics & Warehousing
• Entrepreneurs can provide Digital Dispensers are self sustaining retail units that:
• Sell Quality Beverages direct to Retail
• Monitors Quality and Quality of Beverage
• Dispenses milk to end consumers who pay via digital instruments
• Develop revenue share model of funds to Owner & Retailers
• Create Dispenser distribution models and franchises
Retail Dispensers
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• Entrepreneurs can provide a 360 degree view and management of Storage Operations including:
• Inventory Tracking• Route Management• Sales Force Tracking• Merchandising• Van Selling• Deliveries• Targets Management• Sales Team Productivity• Sales Coverage• Lost Sales• Pricing & Discounts• Promotions• Payments• Credit
• Entrepreneurs can track and automate sales operations on mobile devices:
• Van Selling• Vehicle Stock Manifest• Route Plans• Sales• Invoices• Deliveries• Digital Payments
• Merchandising• Outlet Mapping• Order Taking• Outlet Stock Takes• Product Availability• Outlet Coverage• Competitor Tracking• Productivity
• Entrepreneurs can provide Retail Merchant Owners with Mobile Point of Sale Device and App enabling:
• Better Control of Retail business• Digital catalogues with better
pricing as order direct from suppliers
• Digital Payments via mobile direct to Supplier Bank Account
• Easy User Interface for selling to consumers + collect payments
• Digital Records enabling Owner to manage business remotely
• Extend Commissions to Sales Clerks based on targets
• Credit worthiness to Financial institutions based on records
RetailField SalesDistribution Consumer
• Entrepreneurs can provide Consumers with digital payment, product catalogue and communication services enabling:
• Consumer Derives:• Better Prices at Retail Outlet• Quality Guarantee that product is
from original manufacturer / supplier
• Higher availability due to improved restocking managed by analytics
• Loyalty Points based on purchase:• Value / Volume / Frequency
• Credit Worthiness and access to financial services based on digital purchasing patterns
Customer Touch Points >> FMCG DistributionDigital Enabled Jobs – Food Distribution
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• Entrepreneurs can directly serve Hotels, Restaurants and Cafeterias with Food & Beverage Items
• Through Digital Technology can take electronic orders from establishments and fulfil their specific needs
• Youth can provide specific order and delivery digital tools to eateries enabling them to serve clientele outside of their traditional walk in business
• Enterprising Youth can establish Order Fulfilment services to deliver food and beverages to Consumers at a affordable service fee
• Entrepreneurs can set up mini Agro Parks outside Urban Areas through Technology that provide:
• Aggregation• Sorting• Grading• Cleaning• Packing• Dispatch
• Create Agro Park Service Centers to serve Grocers, Hotels, Restaurants, Cafes and individual homes with high quality Fresh Produce
• Establish Order Processing and Delivery Services for Fresh Produce and Perishable Goods
• Entrepreneurs can begin Agro Brokerage Services for:
• Market Making• Commodity Buying• Commodity Selling• Mini Auctions• Warehouse Receipts
• Once the Commodity Warehouses are automated and the inventory levels available electronically there will be opportunities for digitally enabled Youth to provide Agro Enterprises with services:
• Digital Payment Services• Order Processing• Quality Validation• Warehouse Certification
Commodity TradingAgro ParksHotels, Restaurants & Cafes Predictive Analytics
• Entrepreneurs will be best placed to develop value added services based on the vast data repositories that will form as a result of digitizing the Value Chains.
• Data Analytics Services that collate, track, analyse and predict commodity volumes and values will provide lucrative business models for the digitally enabled Youth
• Researchers, MNOs, IGOs, NGOs, Publishers, Traders and Financial Institutions will subscribe to Analytics Services generated from the Platform that are well packaged and presented
Trade Segmentation >> RetailDigital Enabled Jobs – Trade Services
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• Entrepreneurs can provide Analytics based Services. These comprise of:
• Monitoring Analytics• Transaction Analytics• Operations Analytics• Impact Analytics• Predictive Analytics
• The next steps currently being explored are:
• Predictive Analytics• Credit Scoring• Credit Recommendations
• KPIs are also tracked through auto generated:
• Triggers• Alerts & Notifications• Dashboards
• Entrepreneurs can provide digital payments solutions for:
• Out grower direct settlement• % value remittance• Loan disbursements• Rewards disbursements• Service Provider Fees• Farmer Loan Requests• Cooperative Payments
• Reconciliations take place in real time based on:
• Float• Check Off• Deliveries vs. Payments• Warehouse Receipt Sales• Input Supplier Settlement• Repayments• Partner Revenue Share
PaymentsAnalytics Insurance
• Entrepreneurs can provide Crop, Warehouse, Transport and other Insurance Services based on Commodity:
• Value• Volume • Frequency• Targets
• These Digital Insurance products can be delivered via:
• Mobile money• Airtime / Bundles• Merchandise• Product• Inputs• Services• Discounts• Bonus
the dairy ecosystem actors Digital Enabled Jobs – Financial Services
Credit
• Entrepreneurs can provide credit against Farmer Deliveries based on:
• Purchase Inputs• Draw an Advance• Attract Loan• Sell Warehouse Receipt
• Manage the calculation of the farmer deductions:
• Reserve Fund• Loans• Inputs Taken• Extension Services
Provided• Payment Advances
• Determine Net dues• Milk Deliveries value
less deductions• Month to Date Balances
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Extension Services
Inputs
Warehouse
VillageBuying Centre
Farmer
Processor
Distributor
Analytics & Payments
Smallholder Farmer at the heart of the
project
Provide inputs and extensions services to farmers on check off
Raw producedelivered and
ownership of producemoves away from
farmer
Track aggregation of all produce from all
co-op farmers
Track packaged foodinventory to be shipped
out to market
Order from Distributors & sell in units to consumers
Retail
Tech Platforms
Food Value Chain Transaction Points
Distribute Packaged Products to Retailers, Food Outlets & Key
Accounts
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FARM & OUTGROWER ACTIVITIES
INVENTORY MANAGEMENT
PROCESSING
PLANTINGLAND
PREPARATIONSPRAYING
FARM DISPATCH
STORAGE & DEPOTS
PRODUCTIVITY VS ORDERS
WORKER ASSIGNMENT
PER TABLE
GOODS RECEIVED
NOTE
HARVESTING
WEIGH PRODUCT
INSPECT & GRADE
PACKHOUSEMARKET SALES
EXPORT
RAW MATERIAL
AVAILABILITY
PERIODIC PRODUCTIVITY
TRACKING
COLD ROOM
PACKAGED PRODUCE
Food Value Chain – Process Mapping
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Warehouse
Proposed Financing Workflow
Buying Clerk
Buying Clerk
Buying Clerk
Farmers
FinancialServices
Loyalty &RewardsTransporters
Processor
23
4
5
6
710
1
Distribution
9
Farmers delivers produce to Buying Centre
Buying Clerk measures farmer produce at
Aggregation Centre to establish quality and quantity
before its transported
Transport of produce from Buying center to Cooler or
Warehouse
Verification ofproduce, grading,
packaging , labelling
Direct Farmer Loans secured against produce deliveries to Cooperative which act as credit limit
Processing of Raw Produce Distribution of SKU
Products
Financed Bi-Monthly payments to Cooperatives
for delivered produce
8
Processor remits payments back to Financial Institution
9
Loyalty Scheme for farmers to drive volume
and frequency in deliveries
Financial Services Workflow
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Pilot Project – Muranga County Cooperative Creamery
Fresh Produce, 4 CountiesRegister, Map, Digitize and Transform the Value Chains of Fresh Produce Beans, Fruits & Vegetables in 4 Counties: Machakos, Kiambu, Muranga & Nakuru
Increased Farm Gate ValueIncrease in the price paid to the farmer per KG of produce delivered based on % of the final market price. Fees & Service Provider dues deducted automatically from Digital Wallet upon Buyer Payment
90,000 Registered in AjiraOffer Digital job opportunities to the 90K registered Ajira Members. Job is Registration and Mapping of entire Ward Ecosystem via digital Android mobile devices for the 3 crops
20,000 Digital Jobs CreatedAccurately identify and track all inventory movements, quality standards, purchases, payments and services offered from food to fork Provide monitoring services they conduct using their digital android devices
Map the Stakeholder EcosystemConduct Baseline and Monitoring Surveys on all the market players in a Food Value Chain from the primary producers, service providers, value addition, packaging and sale to the consumers
5,000 SME EntrepreneursIdentify gaps in the market that entrepreneurs can build new business upon or enhance current SME Businesses. Establish new SME businesses to disrupt storage, transport, distribution or payment services and transform them.
Pilot Project Components
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Financial Services – Why partner with Virtual City?
Solutions in Focus
SME Jobs Created
• Registration & Mapping– Registration, Tracking and Mapping the points of production, aggregation and distribution from the farm gate all the way through to processing and sale
• Service Provider Services – Identification and Digitization of service provider activities of extension services, produce purchase, storage, transportation, quality tracking & payments
• Agro Park Services – Provision of best practices for the creation of Agro Parks for the Aggregation, cleaning, packing, distribution, sale and payments of ready for market Food
• Digital Extension Services and Input Product Sales at the Farm Level
• Digitization of the Produce Purchase Process at Farm Gate and Collection Centres
• Digitization of the Storage and Quality Management of Coolers and Warehouses
• Booking and Aggregation of Transport Services of the Fresh Produce at each level
• Digitization of mini Pack Houses that package ready for market Food Packs for Distribution
• Digitization of HORECA Retail Sales, Inventory and Payments processes for business owners
• Digital Financial Services of credit, payments, loans and insurance to each stakeholder
Project Deliverables
Increased Price at the Farm Gate for the Primary Producers, improved efficiency of the Service Providers and Reduced Cost of Food at Retail as result of
Digital Jobs that enhance Food Security
Pilot Project Description
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Virtual City Approach:
Project Execution Team Expertise
Design Focus towards Local User Experiences
New Entrepreneurship Opportunities
• Technology Innovation - delivering enterprise mobility and multiple cloud platforms• Supply Chain Experience - serving all levels of Agro & Distribution of Food• Experienced Teams - for business needs assessment, technical implementation, new
services development, youth training and ongoing business level support
• Results-oriented approach - recognizing that every stakeholder level is unique and has specific business needs and processes that must be factored into the solution
• Focus on Easy To Use Apps - specific to each persona and can be downloaded and used correctly with minimal digital training
• Locally developed and supported IP - ensure business continuity and increased jobs
• Digitization of Existing Services – providing stakeholder specific automation tools to Value Chain Actors and training them on how to improve their business management
• New Digital Services – that disrupt the status quo or provide innovative new approaches to addressing inefficiencies in the Food Value Chain
Easy to Deploy and Manage
• Enabling Scale – with platforms and digital apps that can be affordably deployed, upgraded and serviced to any entity at any point in the country
• Remotely Managed and Supported – using Digital Telemetry Tools inbuilt into the Platforms and Apps to enable remote diagnostics, servicing and repair from a central cloud platform and from which digital entrepreneurs can create Data Analytics Solutions
Key Success Factors
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Project Outcomes – Market Risk Mitigation
Payments vs Delivery Confirmation
Ownership vs Liability
Know Your Customer
Collateral Management
Food Value Chain Risk Mitigation
Identify each Entity in the Value Chain, including people (Farmers, Cooperatives, Traders, etc.), plus equipment. Assign and Track the inventory, invoices and payments against each entity at each stage for auto reconciliation
Track, Validate and Reconcile the movements, storage and location of inventory while maintaining information on quantity & quality parameters plus supporting data on GRNs, Transfers, Dispatches, Entities, Owners, etc.
Manage and track the generation of invoices at the two ends of the Value Chain, Farmer and Consumer where Ownership is transferred. Trigger payments from a Buyer (Consumer) to Seller (Farmer) at point of retail sale, including check off & commissions due to all the Service Providers in the Value Chain instantaneously
Track and assign the liability throughout the Value Chain indicating the quantity, quality and value parameters of commodity held at each stage by each Service Provider independent of the OwnershipTransfer from a Farmer right through to a Consumer.Enable direct access to Financial Services Providers,Manufacturer and Insurance Companies to reduce costsand fees charged due to visibility
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The JobsDigital Job Opportunities
Farmer, Farm, Coop, Crops, Soil,
Livestock Field Surveys Data Sets
Services
Ag Mobile
WarehouseOperations
DistributionOperations
Field SalesOrder Fulfilment
RetailMerchants
Rural FarmTransport
CommodityTransport
Packaged FoodTransport
Home Delivery
ProducePurchases
InputSales
FarmerConsumer
Agro ParkProcessing
Invoice Discounting
StockFinancing
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Feeds Tracking
Seeds Tracking
Fertilizer Tracking
Inputs & Extension Services
Village Aggregation Inventory
County Warehouse Inventory
Processors Inventory
Produce Purchase & Storage
Service Provider Engagement
Farmer& Coops Engagement
Logistics & Services
Engagement
Stakeholder Engagement
Tractor Services
AI Services
Subsidies Allocation
Extension Services Tracking
Financial Services
Loans against Deliveries
Farmer Registration
Farmer Groups Registration
County Extension Officers
Registration of all Players
AgrovetsRegistration
Processors Registration
Service Providers Registration
Warehouse Registration
Agro Parks Registration
Quality Parameters
Tracking
Retail & Distribution Engagement
Service Provider Reconciliation
Stock Reconciliation
Business Management
Farmer Net Dues
Regional Warehouse inventory
Crop Protection Services
Distribution Inventory
Transporter Inventory
Retail Outlets Registration
Inventory Reconciliation
Credit Reconciliation
Payments Reconciliation
Stock Movement Tracking
Input Sales Tracking
Fixed Assets tracking
Supplier Statements
Rewards for Volume
Trader Loyalty points
Loyalty & Sustainability
Farmer Loyalty Points
Input Orders
Order Processing
Produce Purchases
Input Distribution & Extension
Services
Transportation Services
Aggregation & Warehousing
Collateral Based Lending
Trader Sales
Agency Network
Youth Group Services
Farmer Loan Remittance
Insurance Liability Tracking
Buyer & Seller Brokerage
Retail POS Services
Home Delivery Services
Rewards for Frequency
Rewards for Value
Rewards for Quality
Stakeholder Training
Apps Technology Support
Agro Park - Value Chain Services
Cash & bank statements
User Register & Audit Trails
Food Value Chain – Digitally Enabled Services
Supplier Rebates
Trade Credit
Insurance Claims
Deposits and Bonus Schemes
Platform Management
Security Management
Crop Monitoring Services
Farmer Loan Services
Crop Insurance Services
Digital Wallets Services
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A look into devices
Ruggedized Mobile Devices to run Apps in Field
Bags RFID tags
Digital Entrepreneurs’ Toolkits
Electronic Platform Scales for Bulk Produce Purchases
Mobile Handheld Scales for use at Farm Gate
Ruggedized Tablet Devices to run Apps in Warehouses
Digital Cloud Devices
for Data Analytics
& Order Tracking
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Matrix of Responsibility – Joint Partnership
Technology Platforms
Customer Datasets
• Farmer, Farm, Coops, Provider, Processor, Retail Data
• Produce Purchase & Sale Transactional Data
• Inventory, Quality & Collateral Management
• KPI Tracking of Thresholds & Risk
SoftwareApplications
• Entity Registration, Baseline & Monitoring
• Produce Purchase & Input Sales
• Warehouse / Cooler / Buying Centre Collateral Management
• Financial Voucher Value and Wallet Management
Data Management
• Transactional and Reporting Database Management
• Track transactions taking place in the ecosystem
• Database of sales, orders, inventory and payments
• Transactional and Predictive Data Analytics
ProfessionalServiceCenters
• Physical Points of Presence
• Customer Service & Logistics Centers
• Provisioning & Notifications
• Training
• Installation & Deployment
PlatformManaged Services
• Platform Hosting Services
• Incidence Management & Maintenance
• Technical Services
• Platform Availability
Strategic Partnerships
Government Authority
• Development of Stakeholder Engagement Relationships
• Capacity Building at all Value Chain Levels
• Youth Activation & Local Platforms Promotion
FinancialService Provider
• SME Entrepreneurs Capital for Devices & Platform Fees
• Farmer Digital Finance Wallets for Credit & Inputs Financing
• Farmer Payments Disbursements for Advances and Loans
• Invoice Discounting to Distributors & Retail Outlets
• Commodity Receipts Financing to Coops and Warehouses
• Trade Finance to Buyers and Brokers
• Agribusiness Insurance for Crops & Service Providers
Strategic Communication
• Drives the customer acquisition activities through Partners
• Identifies key institutions as Implementation Partners
• Creates demand in additional Counties and Value Chains
• Develops and Communicates Value Proposition per Partner
Policy Analyst• Runs Analytics and Alert Triggers on Food Security
• Runs Risk Assessment based on Impact Data
• Trade & Predictive Analytics to drive Policy Decisions
Trade Assoc., County and Government Agencies
• Market Universe Understanding and Potential Membership Base
• Rapid Results Initiatives Planning and Execution
• Targets, Project KPIs & Accountability Frameworks
• Proactive Billing & Revenue Assurance for License Fees
Partners – Matrix of Responsibilities
2929Hewani IM presentation v2AMS
Project KPIs
Increased in Quality Produce
Volumes into the Formal Food
Value Chain for ConsumersQuality
& Availability
FinancialInclusion
FoodSecurity
Farmer Post Harvest Losses
Market Map&
Traceability
Enhanced Farmer KYC,
Inventory & Service Provider
Tracking for Market Access
Increased Access to Credit plus
reduced Time for Payments to
Farmers and Service ProvidersReduction in the Post
Harvest Losses at various
stages of intervention of
Food Value Chain
Project KPIs
3030Hewani IM presentation v2AMS
• Identify Ajira Digital Scouts to undertake Field Survey Activities for Registration and Value Chain Mapping
• Launch field activities, baseline, mapping, soil samples, monitoring and evaluation at each individual farm, farmer, service provider, trader and retailer
• Ensure each Ajira Scout has Mobile Device a appropriate Mobile App for data collection
• Build Data Repository
Project Phases
• Enable Digitization of Produce Purchasing at Aggregation Centres in each Ward
• Train Produce Purchase Clerks to embrace Digital Technology for weighing, quality tracking and storage of commodities
• Enable Youth to access digital aggregation devices and apps to enable them to create jobs
• Enable Value Added Services Jobs of Transport, Payments, Insurance, Storage, etc. via Mobile Applications that have best practice processes inbuilt
• Enable Digitization of existing Agro Parks and Processors with Devices and Apps for Raw Material Intake, Order Tracking, Pack House Productivity & Packaged Products Dispatch
• Enable mini Agro Parks to be created by entrepreneurs by providing the Agro Park business process maps on Mobile Apps
• Enable digitization of Logistics Services managing inventory, orders, deliveries, purchases, sales & payments on preset Mobile Apps complete with auto reconciliation capability
Field Activities Aggregation & Services Processing & Logistics
• Enable Digitization of existing Distributors, Stockists, Trader, Sales Reps and Retailers business operations
• Enable digitization of Sales Services managing inventory, orders, deliveries, purchases, sales & payments
• Enable Youth Entrepreneurs to establish businesses on preset Mobile Apps complete with auto reconciliation capability
• Enable creation of high value Data Analytics jobs through access to Supply Chain Data
Sales & Distribution
3131Hewani IM presentation v2AMS
Pilot Project Implementation
DescriptionMilestone
IMilestone
IIMilestone
IIIMilestone
IV Go Live!
V
Project Kickoff1. Contract Completion2. Project Launch
Value Chain Mapping1. Onboard & Train outsourced Ajira Digital Scouts2. Register & Map all Farmers, Service Providers &
Warehouses3. Register & Map Processors, Distributors & Retailers
Platform & Apps Configuration1. Hardware2. Software Modules3. Process Automation & Data Analysis
Monetization1. Order Processing2. Financial Products Mapping3. Transaction Processing
Rollout1. User Acceptance Testing2. Impact Analysis3. Scale Countrywide
3232Hewani IM presentation v2AMS
Pilot Project Budget
Q1 Q2 Q3 Q4 Total
Budget (US$) Budget (US$) Budget (US$) Budget (US$) Budget (US$)
Budget Area 1 - System Customisation
1 PROJECT INITIALISATION 23,700 - - - 23,700
2 SOFTWARE APPS CUSTOMISATION 110,800 110,800 82,800 - 304,400
3 PLATFORMS CUSTOMISATION 85,900 35,600 35,600 - 157,100
Total Budget Area 1 - Software Customisation 220,400 146,400 118,400 - 485,200
Budget Area 2 - Technical Deployment
4 TECHNOLOGY ROLLOUT - 43,500 30,700 30,700 104,900
5 TECHNICAL SUPPORT - - 49,500 49,500 99,000
Total Budget Area 2 - Technical Deployment - 43,500 80,200 80,200 203,900
Budget Area 3 - Go To Market
6 MARKET MAPPING 35,300 27,800 27,800 27,800 118,700
7 VALUE ADDED SERVICES - 21,600 26,000 - 47,600
8 OPERATIONS EXPENSES 42,600 42,600 42,600 42,600 170,400
Total Budget Area 3 - Market Readiness 77,900 92,000 96,400 70,400 336,700
Budget Area 4 - Security & Integration
9 SECURITY & INTEGRATION 12,600 23,600 23,600 - 59,800
Total Budget Area 4 - Security & Integration 12,600 23,600 23,600 - 59,800
Budget Area 5 - Impact
10 DATA ANALYTICS & IMPACT TRACKING 5,200 36,400 36,400 36,400 114,400
Total Budget Area 5 - Impact 5,200 36,400 36,400 36,400 114,400
Project Total US$ 316,100 341,900 355,000 187,000 1,200,000
Budget Lines
3333Hewani IM presentation v2AMS
Farmer to Buying Centre
Cooler / Warehouse
Transporter 1 – Buying
Clerk to Cooler
Transporter 2 – Cooler to
Processor
Knowledge Partner
Farmer Receives direct
proportion of produce
value from Processor
Technology Partner
X%
X%
X%
X%
x%
x%
Automated top-up of service
provider wallets
Real time reconciliation of
service provider invoices per kg
or km of produce handled
Real time notification of all top-
ups to all service providers
Z/-
Digitally
enabled Youth
can build
sustainable
entrepreneurial
opportunities
with reliable
income
Finance Service Provider x%
Business Model – Service Providers
Service Providers paid service
fee as opposed to being Traders
Service Providers limited from
being Traders that increase cost
3434Hewani IM presentation v2AMS
Farmer Advance Paid at60% of delivered value instantaneously
Direct Settlement
System Implementation
Credit Score driven Loans to both Coop & Farmers based on Data Analytics
Farmers end month Net Dues after Inputs & Service Provider deductions
Loan or Advance Fees
Value Identification
Pre-Payments or Remittance Options
Farmer Direct Payments
TX Fee Rate: x%
Revenue ShareFinance Partner: x%
Technology Partner: x%
Loans
1
4
.
3
Financial Model – Loans & Payment Remittances
3535Hewani IM presentation v2AMS
Project Result – Impact Analytics
Visibility is key around the ecosystem with players keen to understand in real time:
-Farmer Demographics
-Farm & Crop Baselines
-Inputs Applied
-Produce Collections
-Produce Losses
-Inventory Levels
-Inventory Locations
-Quality of Produce
-Value of Produce
-Produce Sales at Market
-Market Buyers
Baseline & Registration
Post Harvest Volumes &
Losses
Inventory Tracking Inputs Tracking
Farmer Payments and
Financial inclusionBuyer Transactions &
Market Value
Impact Analytics
3636Hewani IM presentation v2AMS
How you will consume insights from the market
A tabular view of all reports –Detailed with drill down capability
A graphical view of all reports – Detailed with drill down capability
A map based view of all reports – Detailed with drill down capability
Director level snapshots Precise and to the point (powerful triggers to drive a decision
Insights – Alerts, Triggers & Trends
3737Hewani IM presentation v2AMS
• The Dashboard Visualizations represent live dashboard indicator tracking for each value chain or a consolidated view of all projects currently running.
• The targets per project and / or indicator are pre-set and then live datasets compared against this either individually or collectively
• The integrated nature of all the project stages, entities, users and datasets enables a consolidated analysis of an entire project
• The comparative indicators can be edited at any point in time
• This data can also be linked to other datasets such as weather t provide predictive analytics with respect to Yield, etc.
Picture of SuccessRealtime Visibility of entire Food Value Chain
3838Hewani IM presentation v2AMS
Visualization of Project Activities
• Provide Active and Real Time
Visualizations of all Project
Activities
• Every activity on Platform tracked
on map
• All surveys, services, facilities,
transactions, providers, volumes,
etc. constantly tracked on map
Visualization of Project Activities
3939Hewani IM presentation v2AMS
% Gender Ratio
• Track Number of:• Youth• Farmers • Aggregation Centers• Farmer Groups• Cooperatives• Warehouses• Transporters• Service Providers• Services• Processors• Distributors• Sales Reps• Retailers
• Tracks the Age of the Youth Entrepreneurs in the Platform
• Tracks the number of Facilities and Providers across different levels in Supply Chain
• Tracks the Percentage Gender Ratio at each level
• Displays various stakeholders on Map and tracks where they are active
# of Farmers, Aggregators & Facilities
4040Hewani IM presentation v2AMS
Average Land Size in Acres
• Establish Universe of Land under cultivation
• Establish baseline land data for use in developing predictive food security data models
• Develop Policy based on land distribution data
Smallholder is still king!
Average Land Sizes
4141Hewani IM presentation v2AMS
Average Actual Acreage on Crop
• Through locally based digital youth groups, can affordably determine the exact actual acreage under crop
• Determine exact number of bushes per crop in given areas
• Conduct Counts of crop bushes per location
• Pre determine Fertilizer and inputs requirement
• Provide framework to establish input vouchers based on actual farmer requirements
• Make Policy decisions based on precise verifiable data
• Make Food security predictions based on Data Analytics
Actual Acreage per Crop
4242Hewani IM presentation v2AMS
Crop Germination rate
• Locally based youth empowered with digital tools can reliably track the performance of crop lifecycles
• Crop Germination Rate• Track germination rate
of specific crops in given areas
• Use local digital youth to periodically undertake survey, pictures, soil samples, etc. as crop matures
• Identify diseases, infestations and incidences through pictures
• Track Crop Performance through periodical pictures
Crop Germination Rate
4343Hewani IM presentation v2AMS
Inventory Volumes Held in Village Aggregation Centres
• Food price escalations are normally driven by skewed information on the predicted inventory levels of various commodities
• Digitally enabled Youth with minimal training on produce purchase and storage mobile apps can provide an extremely valuable source of real time Commodity levels across country
• Government Policy historically driven by sample surveys can now be better served with actual real time data
• Commodity Price fluctuations traditionally driven by select brokers with own interests, can be stabilized with crowd sourced inventory and quality grade statistics
• Service Providers such as warehouse operators, transporters and legitimate brokers can leverage this information to provide more affordable rates
• The resulting price stability would have an significant impact on food security and planning
VAC’s spread
Inventory Volumes in Storage
4444Hewani IM presentation v2AMS
Average Market Price per KG
• The average price of product per KG for all counties is recorded by digital youth in real time across the country
• Average prices can easily be established across markets
• Digitally empowered youth can accurately collect and upload market prices from across the country into a central repository
• Buyers and Sellers can base their prices on real information
• Food Prices in the key markets would reach equilibrium faster and in a more stable fashion resulting in lower prices to the consumer
Average Price per KG
4545Hewani IM presentation v2AMS
Net Benefit per Household
• Net benefit per household• Tracks earnings made per
farmer for each sale• This enables Policy makers
to reliably track inflationary pressures on the agricultural community
• Input providers and manufacturers can create specific product packages to meet the needs of the various demographics
• Researchers can build reliable models based on factual data
Net Benefit per Household
4646Hewani IM presentation v2AMS
How We Measure Impact
• Digitally Enabled Jobs Created
• Current vs. Previous Volumes & Values
• Outgrower Performance & Consistency
• Affordable Access to Finance for Farmers, Service Providers and Parks
• Affordable Access to Inputs for Farmers
• Gender per Baseline or Transaction
• Quality improvement in Warehouse
• Speed & Frequency in Payments
What We Measure
• Number of Youth in Food Value Chain Services
• Number of Digital Devices and Subscriptions
• Baseline + M&E of Farmers, Farms and Farmer Groups comprising KPI Indicators
• Transaction Volumes per Produce Delivered
• Gains & Losses in Supply Chain
• Productivity at Warehouses and Processor
• Order Completion Rate & Value
• Country Impact Indicators
Measuring Tools
• Active Digital Platform Users
• Mobile Based Baseline Survey
• Mobile Based Produce Purchase
• Electronic Inventory Management
• Digital Payment Platform for pre-paying Farmers and Cooperatives
• Data Analytics Platform for auto tracking of Impact Indicators
• Impact Dashboard Toolkit
Impact Tracking & BeneficiariesImpact Tracking
4747Hewani IM presentation v2AMS
Project Outcomes - Market Challenges Addressed
Improvement in Poor stocks handling, minimal quality checks and multiple points of trade in value chain that traditionally results in high post harvest losses
Regain Trust eroded due to Fraud and Inefficiency in the management of the Purchase, Sales, Storage and Transportation of raw produce
Address Limited growth and scale due to Lack of access to Capital and Credit to the Farmers compounded by long payment cycles
Control Produce Cost escalation of produce at each point in the value chain, resulting in high consumer price yet low producer payments
Correct Poor adoption / availability of technology specifically designed for agricultural sector at various points in Value Chain
Restrict Low quality inputs and extension services negatively affecting yield and farmer output consistency plus crop quality
Food Security Outcomes
4848Hewani IM presentation v2AMS
Yield
Increased Farm Gate Value
Jobs
• 20,000 Digital Enabled Jobs
• 5,000 SME Businesses Digitised
• 400,000 Farmers Digitised
• Create Digital Enabled Youth Entrepreneurs
• Provide Platform for Agro Innovations
• Create Digital Enabled Agro Services
• New Jobs along different stages in Value Chain
• 15% Increase Production Yield
• 9% Reduction in Post Harvest Storage Losses
• Best Practices Adoption
• Access to Extension Services
• Higher Quality Inputs
• Improved Monitoring
• New Service Providers
• 150% Increase in Access to Financial Services by SME Entrepreneurs
• 12% Increased Margin of Commodity Market Value to Primary Producers
Impact Targets
Enhanced
Food Security
4949Hewani IM presentation v2AMS
Access to Markets
Enable access to final markets for farmers as opposed to Farm Gate or local market thus increasing
value of produce
Digitally Enabled Jobs
Create Digitally Enabled Jobs in the Food Value Chain targeting
Youth
Quality Standards
Implement strict adherence to quality standards throughout the value chain to
increase the demand and value per output for Smallholder Farmers in County
Food Security
Identify, Track and Proactively React to the Food Balance Sheet Indicators across the
County to develop Policy Decisions
Increased Farmer Yield ValueIncreased revenue for the farmers by ensuring a
significant proportion of the market price is passed directly to them as opposed to middlemen
Financial Services Access
Increased visibility of volumes, values and
frequency of farmer deliveries improves the attractiveness to
Financial Service Providers
Qualitative ResultsProject Results
5050Hewani IM presentation v2AMS
Youth
Service Providers
Financial Partners
• Farmer Specific Financial Products
• Entrepreneur & SME Focus
• Invoice discounting opportunities
• increased Access to Credit
Agro Market Buyers & Sellers
Retailers
Digital Entrepreneurs
Researchers
Youth Entrepreneur
• Digitally Enabled
• Successful Entrepreneur
• Personal Fulfillment
• Family Impact
• Improved Livelihood
Merchant
• Customer Satisfaction
• Increased Sales
• Sustainable Business
• Access to Financial Credit
The Food Value Chain
• Reduced Cost of Food
• Improved Food Availability
• Higher Value to Farmer
• Faster Sales to Cash Cycle
Impact Jobs Created Growth in Agro Ecosystem
Youth Jobs
Picture of SuccessPicture of Success
Digital Driven Income